August 4 2011
US Cosmeceutical Demand on the Rise

US demand for cosmeceutical products is expected to increase by 5.8% per annum to $8.5 billion in 2015, driven by an ageing populace seeking to maintain the appearance of youth. The target market for cosmeceuticals continues to expand beyond the traditional 45+ demographic to include much younger individuals, as the national obsession with youth continues and focus shifts to products intended to stave off the first signs of ageing. Limiting further gains will be growing pricing pressures owing to the expanding market penetration of private label brands and the rapid commoditization of innovative ingredients and products.

Additionally, cosmeceuticals face intense competition from alternative treatments (such as cosmetic surgery). The chemicals used in cosmeceutical products provide a competitive advantage by which product manufacturers differentiate their products. Gains will be spurred by the use of new, value-added active ingredients in product formulations. Antioxidants will remain the largest category, with above-average gains promoted by their incorporation into both topical and ingestible formulations. Botanicals will continue to see the fastest gains in demand as consumers continue to favour “natural” products.

Injectables and skincare products will experience the fastest growth, based on antiageing benefits. Brands such as Allergan’s BOTOX COSMETIC and JUVÉDERM have been essentially synonymous with injectables since their introduction … and will continue to lead growth going forward. The first direct competition to BOTOX emerged in 2009 with FDA’s approval of DYSPORT, which will help to reshape the injectables market. Relatively recently introduced hyaluronic acid-based dermal fillers will see particularly fast growth.

In addition to achieving above-average growth, skincare products will remain the largest product category, set to account for 64% of all cosmeceutical product demand in 2015. Age-defying products will achieve the fastest gains in the segment, driven by a highly receptive, expanding group of greying “baby boomers” who want to redress visible damage to the skin caused by ageing, ultraviolet radiation and other environmental stressors, as well as a growing number of younger individuals seeking to prevent the signs of ageing. More information is available in Cosmeceuticals from The Freedonia Group, Inc.

More information
www.freedoniagroup.com